On January 1, a corporation issued $402,500 of 10-year, 12% bonds.

The interest is payable semiannually on June 30 and December 31. The issue price was $452,660 based on a 10% market interest rate.

Assuming the effective-interest method of amortization is used, and rounding all calculations to the nearest whole dollar, what is the interest expense for the six-month period ending June 30 of the issuance year?

Group of answer choices

$24,150.

$20,125.

$22,633.

$27,160.